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-   -   Solved MCQs of Mercantile Law Past Papers (2000-2013) (http://www.cssforum.com.pk/css-optional-subjects/group-vi/mercantile-law/26430-solved-mcqs-mercantile-law-past-papers-2000-2013-a.html)

Raz Sunday, August 30, 2009 01:38 PM
Solved MCQs of Mercantile Law Past Papers (2000-2013)
 
[CENTER][FONT=Courier New][SIZE=4][B][U]Mercantile Law CE-2000[/U][/B][/SIZE][/FONT][/CENTER]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B]COMPULSORY QUESTION[/B][/SIZE][/FONT]
[LEFT][FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B]8.[/B] Write only the correct answers in the Answer Book. Don’t reproduce the questions.[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][B](1)[/B] Payment can be made on a Bill of Exchange to:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) Only to a person specified therein[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][B](2)[/B] How a cheque is treated by a banker among the following when the balance at credit of drawer is found insufficient"[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](a) Be dishonored. [/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][B](3) [/B]'Accommodation Party’ is a person who has signed a negotiable instrument:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) Without receiving the value thereof.[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](4)[/B] Which of the following is correct:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](a) A Provincial Government can constitute a Corporate Law Authority.[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](5)[/B] Which of the following is correct:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](c) None of these.[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](6) [/B]Good will:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](a) can be sold separately from other property of a firm. [/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](7.)[/B] When undue influence is used in a contract by one party against the other, the contract becomes:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) voidable [/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](8)[/B] Which of the following is correct:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) cannot mix [/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](9)[/B] Pledgor or Pawnor are:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](a) same persons [/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](10)[/B] The principal must ratify the contract:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](a) as a whole [/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](11)[/B] A dormant partner is one:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) whose name does not appear in any way as partner.[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](12)[/B] Caveat Emptor means:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](c) The buyer should be aware of the suitability of goods for his purpose.[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](13)[/B] If the seller of immovable property has effected a fire insurance policy in respect of the property, the purchaser, of the property:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](a) cannot claim any benefit of it. [/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](14)[/B] The delivery of the insurance policy to the assured is:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](a) essential to make binding contract. [/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](15)[/B] The grace period for every instrument payable at a specified period after date or after sight is:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](c) 3 days.[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](16)[/B] Special Resolution is passed at a general meeting of a Public Company when not less than the following notice has been given: [/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) 15 days notice[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](17) [/B]One of the special privileges of a Private Limited Company is that:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](a) there is restriction on the right of members to transfer their shares. [/B](By the way this is not a privilege rather a disadvantage)[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](18) [/B]A company shall be eligible for registration as a Modaraba Company if its paid-up capital is not less than:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](c) 2.5 million rupees.[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](19)[/B] A and B are partners. A buys land with partnership moneys for his sole benefit. Thereafter, A debits himself in the firm books and becomes a debtor to the firm for the amount of the purchase money. The purchased property is:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) not partnership property.[/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](20)[/B] Whether a partner has got power to assign his partnership interest to any other person so as to make him a partner in the business?[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) No[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[/LEFT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B]Note:[/B] Please suggest ammendments if you find any wrong answer in this list.[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4]Regards[/SIZE][/FONT]

Raz Sunday, August 30, 2009 02:21 PM
MCQs Part Solved
 
[CENTER][CENTER][FONT=Courier New][SIZE=4][B]COMPETITIVE EXAMINATION [/B][B] 2001.[/B][/SIZE][/FONT][/CENTER]
[/CENTER]
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[FONT=Courier New][SIZE=4][/SIZE][/FONT][FONT=Courier New][SIZE=4][/SIZE][/FONT]

[FONT=Courier New][SIZE=4][/SIZE][/FONT][FONT=Courier New][SIZE=4][/SIZE][/FONT]

[FONT=Courier New][SIZE=4][/SIZE][/FONT][CENTER][CENTER][B][U][FONT=Courier New][SIZE=4]MERCANTILE LAW[/SIZE][/FONT][/U][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
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[/CENTER]
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[/CENTER]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]

[FONT=Courier New][SIZE=4][/SIZE][/FONT][CENTER][FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT] [/CENTER]

[FONT=Courier New][SIZE=4][/SIZE][/FONT][CENTER][CENTER][B][U][FONT=Courier New][SIZE=4]COMPULSORY QUESTION[/SIZE][/FONT][/U][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[/CENTER]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[/CENTER]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B]8.[/B] Write only the correct answer in the Answer Book. Do not reproduce the questions.[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](1)[/B] A proposes, by a letter sent by post, to sell his house to B. The acceptance of the proposal is complete:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](b) the moment the letter is received by B.[/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](2)[/B] In order to convert a proposal into a promise, the acceptance must be:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](b) Unconditional [/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](3)[/B] A voidable contract may be turned by the option of the party at a loss into:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](b) A valid contract[/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](4)[/B] The maximum number of members in a private company is:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](b) 50[/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](5)[/B] The maximum number of partners in a firm is:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](c) None of these[/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](6)[/B] The Companies Ordinance, 1984:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](c) None of these[/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](7)[/B] A Company is subsidiary of another Company:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4]([B]a) If the other company holds more than 50% of its voting shares[/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](8)[/B] P appoints A as his agent. A is not a person of full age:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](b) The appointment of A is valid[/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](9)[/B] Statutory meeting of a Company is held:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](a) Once in a life time of the Company[/B][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](10)[/B] Publication of Prospectus is compulsory by:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](a) A Private Company[/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](11)[/B] Award is a decision given by:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](b) An arbitrator[/B][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](12)[/B] A lends some ornaments to B to be used in a marriage. The transaction is:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](a) A bailment [/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](13)[/B] A partner may be expelled from a partnership by:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](a) A majority of partners[/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](14)[/B] Third Party Insurance is an Insurance Relating to:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](c) None of these[/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](15)[/B] A Bill of Exchange has:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](b) Three parties[/B][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4]([B]16)[/B] A minor:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](a) Can make, draw, accept, or indorse a negotiable instrument[/B][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](17)[/B] A void as well as an illegal contract is:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](b) Not familiar in effect[/B][/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](18)[/B] In the Companies Ordinance, 1984, there are:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](a) Kinds of shares[/B][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](19)[/B] Like a cheque, a bill of exchange may be:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](b) Cannot be crossed[/B][/SIZE][/FONT]
[FONT=Courier New][SIZE=4]("Like" should not be used rather "unlike")[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](20)[/B] An executor consideration takes the form of:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](a) A promise to be performed in future[/B][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B]Note: Rectification will be appreciated.[/B][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4]Regards[/SIZE][/FONT]

Raz Sunday, August 30, 2009 02:39 PM
[CENTER][CENTER]


[FONT=Courier New][SIZE=4][B](14)[/B] Third Party Insurance is an Insurance Relating to:[/SIZE][/FONT]
[/CENTER]


[/CENTER]

[FONT=Courier New][SIZE=4][B](c) None of these (Not sure, option (a) may also qualify for the answer i.e Motor Vehicles Accidents)[/B][/SIZE][/FONT]

Raz Sunday, August 30, 2009 02:54 PM
MCQs Part Solved
 
[B][U][FONT=Courier New][SIZE=4]CE-2002[/SIZE][/FONT][/U][/B]
[B][U][FONT=Courier New][SIZE=4][/SIZE][/FONT][/U][/B]
[B][U][FONT=Courier New][SIZE=4]MERCANTILE LAW[/SIZE][/FONT][/U][/B][FONT=Courier New][SIZE=4][/SIZE][/FONT]

[FONT=Courier New][SIZE=4][/SIZE][/FONT][CENTER][CENTER][B][U][FONT=Courier New][SIZE=4]COMPULSORY QUESTION[/SIZE][/FONT][/U][/B][/CENTER]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[/CENTER]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4]8. Write only the correct answer in the Answer Book. Do not reproduce the questions.[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](1) [/B]Portage Ltd wishes to alter its memorandum to state that all of the company’s shareholders must hold a minimum of 200 shares. Can Brian, who currently owns 100 shares, be bound by this alteration?[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](a) Yes, if the alteration is done by special resolution[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](2)[/B] Gama offers to sell his care to Maja for Rs. 550,000/-, Maja accepts the offer but states that he would buy it for Rs. 500,000/-. The statement of Maja is:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) A counter offer[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](3)[/B] Kala Khan agreed to supply onion to Sodagar Khan six months after the date of contract and Kala Khan agreed to pay for such supply. Two months after the conclusion of the contract Kala Khan refused to supply. In such case which of the following facts is correct?[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](c) Sodagar Khan can validly sue Kala Khan any time after he refused to supply onions.[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](4)[/B] Sharafat Hussain offererd to sell his tonga to Sadaqat Hussain for Rs. 35,000/- but Sadaqat Hussain did not answer and nearby standing Kiramat Hussain accepted the offer. Kiramat Hussain’s answer to the offer is:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](d) None of these[/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](5)[/B] The appointment of a person of the minor age as an agent is:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) Valid[/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](6)[/B] Third party insurance is an insurance for:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](a) Motor vehicles’ accidents (Doubt)[/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](7)[/B] A bill of exchange involves[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) Three parties[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](8)[/B] A bearer instrument may be negotiated by:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](a) Mere delivery[/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](9)[/B] An order instrument may be negotiated by:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) Endorsement and delivery[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](10)[/B] A partnership business is unlawful if the number of partners in it is:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](c) More than twenty[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](11)[/B] The relation between the partners of a firm is of:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](c) Principal and Agent[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](12)[/B] An unregistered contract of partnership is:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4](a) Valid (Doubt, Registration of partnership is not compulsory but unregistered partnership suffers from some legal disabilities)[/SIZE][/FONT]
[FONT=Courier New][SIZE=4](d) None of these (May be the 2nd choice)[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](13)[/B] A decision made by arbitrators is called[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) Award[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](14)[/B] An empire in an arbitration reference is appointed when the number of arbitrators is:[/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](b) Even[/B] [/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](15)[/B] The minimum number of members in a Private Limited Company is:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) Two[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](16)[/B] A Public Limited Company must have:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) Seven directors[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](17)[/B] Which of the following rights a company cannot have:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](b) Right to vote in the general elections of the state.[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](18)[/B] The maximum age for a person who concludes a contract of sale of goods is:[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](d) None of these[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](19)[/B] It is essential for the validity of a contract of sale of goods that the price must be paid.[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](c) None of these[/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][B](20)[/B] If the delivery of goods under a contract of sale of goods is late.[/SIZE][/FONT]
[B][FONT=Courier New][SIZE=4](a) The buyer is not bound to accept the delivery.[/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4]Note: Rectifications will be appreciated.[/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[B][FONT=Courier New][SIZE=4][/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4]Regards[/SIZE][/FONT]

Raz Sunday, August 30, 2009 05:02 PM
[CENTER][CENTER][B][U][FONT=Courier New][SIZE=4]CE-2003[/SIZE][/FONT][/U][/B]
[B][U][FONT=Courier New][SIZE=4]MERCANTILE LAW[/SIZE][/FONT][/U][/B]
[B][U][FONT=Courier New][SIZE=4]COMPULSORY QUESTION[/SIZE][/FONT][/U][/B]
[FONT=Courier New]
[SIZE=4][/SIZE][/FONT][/CENTER]
[/CENTER]
[FONT=Courier New][SIZE=4][B]8. In each of the following clauses of this question only one statement is correct. Write down in your answer book only the correct statement of the following clauses. Do not write the whole clause.[/B]

[B](1)[/B] To what extent is a member of a company which is limited by guarantee personally liable for the company’s debts?
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](c) His personally liability is limited to the amount set out in the memorandum on a winding up.
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](2)[/B] Jamshed, a house painter, misreads his work under order and paints Salman’s house by accident while Salman sits inside watching. Which of the following is correct?
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](d) a quasi-contract has been formed
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](3)[/B] On 30-11-2003 A offered to buy one of the 10 tables of the same specification present in B’s shop for 500 rupees. B accepted the offer. It was agreed that the table would be delivered on 1-12-2003 while the price would be paid on 8-12-2003. It was not clear which of those tables was attributed to the contract. Which of the following is correct?
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](c) The table will become the property of A on 8-12-2003 when he will pay the price.
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](4)[/B] Akram sent a proposal to Banaras by post for the sale of his stall in the Sunday Market. Banaras accepted the offer by post. Banaras may revoke his acceptance at any time before:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](a) Akram receives the letter of acceptance
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](5)[/B] A appoints B as his agent for buying him a house. B appoints C as his agent to arrange a house to be bought. C is liable to:
[B](a) B only[/B][/SIZE][/FONT]
[B]
[/B]
[FONT=Courier New][SIZE=4][B](6)[/B] Delivery of an insurance policy to the insured is:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](b) Essential to form a binding contract between the prties
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](7)[/B] A partner may be expelled from a firm
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](a) By the majority of the partners
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](8)[/B] An order instrument may be negotiated by:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](b) Endorsement and delivery
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](9)[/B] A cheque is always payable.
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](b) On demand
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](10)[/B] A sold some food stuff to B, a minor, on credit. If B refuses to pay:
[B](a) A can be paid out of the property of B[/B][/SIZE][/FONT]
[B]
[/B]
[FONT=Courier New][SIZE=4][B](11)[/B] If a contract has been fully performed by both parties, that contract would be described as:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](a) Executed contract
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](12)[/B] An unregistered contract of sale of a computer is:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](c) Unenforceable
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](13)[/B] A decision made by an arbitrator is:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](b) Appealable
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](14)[/B] Each party to an arbitration agreement can appoint:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](a) Only one arbitrators
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](15)[/B] Shahid and Hamid wished to form a company. On 1 December 2002 they filed all the required documents with the Register. On 10 February 2003 they received the Certificate of Incorporation dated 1 February 2003. The company was incorporated on:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](b) 1 February 2003
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](16)[/B] A public limited company must have:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](b) Seven directors
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](17)[/B] A listed public limited company must have:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](b) Seven directors
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](18)[/B] A, aged 18 for whom a court has appointed a guardian, wants to make a contract. He can make a contract.
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](b) After attaining the age of Twenty-one years
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](19)[/B] A agrees to pay B 10,000 rupees if his (B’s) horse wins the race. The horse died one day before the race. The contract is:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](b) Void
[/SIZE][/FONT][/B]

[FONT=Courier New][SIZE=4][B](20)[/B] Abid’s son has forged Majid’s name to a pronote. Majid under threat of prosecuting Abid’s son demanded that he should sell him his bungalow that is worth one billion rupees for one million only. Abid had no way except to agree with the proposal. The contract is:
[/SIZE][/FONT][B][FONT=Courier New][SIZE=4](c) Voidable
[/SIZE][/FONT][/B]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4][/SIZE][/FONT]
[FONT=Courier New][SIZE=4]Regards[/SIZE][/FONT]

Raz Wednesday, September 02, 2009 10:07 PM
[B][U][COLOR=black][FONT=Verdana][/FONT][/COLOR][/U][/B]
[CENTER][B][U][COLOR=black][FONT=Verdana][FONT=Courier New][SIZE=3]CE-2004[/SIZE][/FONT][/FONT][/COLOR][/U][/B]
[B][U][COLOR=black][FONT=Verdana][FONT=Courier New][SIZE=3][/SIZE][/FONT][/FONT][/COLOR][/U][/B]
[B][U][COLOR=black][FONT=Verdana][FONT=Courier New][SIZE=3]MERCANTILE LAW[/SIZE][/FONT][/FONT][/COLOR][/U][/B]
[FONT=Courier New][SIZE=3][B][U][COLOR=black][FONT=Verdana][/FONT][/COLOR][/U][/B][B][U][COLOR=black][FONT=Verdana][/FONT][/COLOR][/U][/B][/SIZE][/FONT]
[B][U][COLOR=black][FONT=Verdana][FONT=Courier New][SIZE=3]COMPULSORY QUESTION[/SIZE][/FONT][/FONT][/COLOR][/U][/B][/CENTER]
[FONT=Courier New][SIZE=3][B][U][COLOR=black][FONT=Verdana][/FONT][/COLOR][/U][/B][COLOR=black][FONT=Verdana][/FONT][/COLOR][/SIZE][/FONT]
[COLOR=black][FONT=Verdana][FONT=Courier New][SIZE=3]8. Write only the correct answer in the Answer Book. Do not reproduce the questions.


(1) A person on attaining age of majority.
(a) Can ratify an agreement made by him during his minority.
[/SIZE][/FONT][/FONT][/COLOR]
[COLOR=black][FONT=Verdana]
[FONT=Courier New][SIZE=3](2) A person who has attained the age of 18 while under guardian:
(b) Is not competent to contract

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](3) A person who is usually of unsound mind:
(a) Can make a contract during the interval when he is of sound mind.

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](4) When a contract is substituted with a new contract.
(b) The original contract need not be performed.

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](5) For a breach of contract:
(b) The plaintiff can recover compensation if the subject matter of the contract was not easily available in the market.

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](6) The supplier of necessaries:
(b) Can recover the price from the property of the minor.

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](7) A contract of which one party promises to save the other from loss caused to him by the conduct of the promise himself or by the conduct of any other person.
(b) IS called a contract of indemnity

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](8) Surety is a person:
(a) Who promises to perform or discharge the liability of a third person in case of his default.

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](9) If the bailee’s lawful charges are not paid, he may retain the goods:
(c) None of these

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](10) A person who works under the control of another:
(a) Is known as an agent

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](11) A promises to pay Rs. 1000 to B and takes a promissory note from him for that amount but pays only Rs. 500 on it.
(c) None of these

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](12) A bill of exchange is addressed to B. It is accepted by (i) B as a partner of a firm in the firm’s name, (ii) it is accepted by B and C.
(c) None of these

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](13) A buys nylon pant from a store and starts wearing it. A contracts skin disease:
(c) None of these

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](14) A, B & C are partners in a business. An order for certain goods is placed with D. Before the goods are delivered, C dies. D had no notice of the death of C:
(b) A & B are jointly as well as severally liable

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](15) When a firm is put to an end as between all the parties:
(b) It is dissolution

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](16) A partner may be expelled from a firm if there is agreement to that effect:
(a) By majority of the partners

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](17) Differences between the arbitrators are:
(b) Decided by an Umpire

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](18) A authorizes B to buy 50 sheep for him. B buys the whole lot of 44 sheep and 15 lambs for one sum of Rs. 30000:
(a) A can repudiate the whole transaction

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](19) A public limited company must have:
(c) None of these

[/SIZE][/FONT]
[FONT=Courier New][SIZE=3](20) An agreement based on bilateral mistake:
(a) Is void

[/SIZE][/FONT]
[/FONT][/COLOR][COLOR=black][FONT=Verdana][FONT=Courier New][SIZE=3] [/SIZE][/FONT][/FONT][/COLOR]
[COLOR=black][FONT=Verdana][FONT=Courier New][SIZE=3] [/SIZE][/FONT][/FONT][/COLOR]
[COLOR=black][FONT=Verdana][FONT=Courier New][SIZE=3]Regards[/SIZE][/FONT][/FONT][/COLOR]

Raz Thursday, September 03, 2009 11:13 PM
[B][U][COLOR=black][FONT=Times New Roman][CENTER][B][U][COLOR=black][FONT=Times New Roman][SIZE=4]CE-2005[/SIZE][/FONT][/COLOR][/U][/B]
[B][U][COLOR=black][FONT=Times New Roman][SIZE=4][/SIZE][/FONT][/COLOR][/U][/B]
[B][U][COLOR=black][FONT=Times New Roman][SIZE=4]MERCANTILE LAW[/SIZE][/FONT][/COLOR][/U][/B][COLOR=black][/CENTER]
[/COLOR][/FONT][/COLOR][/U][/B][B][U][COLOR=black][FONT=Times New Roman][SIZE=4][/SIZE][/FONT][/COLOR][/U][/B]
[B][U][COLOR=black][FONT=Times New Roman][SIZE=4]COMPULSORY QUESTION[/SIZE][/FONT][/COLOR][/U][/B]
[B][U][COLOR=black][FONT=Times New Roman][SIZE=4][/SIZE][/FONT][/COLOR][/U][/B]
[COLOR=black][FONT=Times New Roman][SIZE=4]8. Write the correct answer in the Answer Book. Do not reproduce the question.


[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](1) [/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4]Talal is forming a business which he wants to control completely. He knows nobody else with whom he wishes to work, he values his privacy, and he dislikes formality, paper work, state filing requirements, and lawyers. What type of business organization should he prefer?
[/SIZE][SIZE=4][B](b) Sole Proprietorship
[/B]

[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](2) [/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4]The Articles of Association of a company contain:
[/SIZE][SIZE=4][B](c) Information about the corporation, including its organization and functions.
[/B]

[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](3) [/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4]A partnership involves three essential elements. Which of the following is not one of those elements?
[/SIZE][SIZE=4][B](b) Limited liability for the liabilities of the firm
[/B]

[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](4) [/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4]Rashid, Shahid and Talal agree to form a computer business. Rashid agrees to manage the business and to assume full persona; liability. Shahid and Talal agree to invest in the firm but to be liable only to that extent. These three have formed :
[/SIZE][SIZE=4][B](b) a limited liability partnership
[/B]

[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](5) [/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4]The members of a limited partnership include:
[B](a) general and limited partners [/B][/SIZE][/FONT][/COLOR]
[COLOR=black]

[FONT=Times New Roman][SIZE=4][/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](6) [/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4]A bearer cheque may be negotiated by:
[B](a) Mere delivery [/B][/SIZE][/FONT][/COLOR]
[COLOR=black]

[FONT=Times New Roman][SIZE=4][/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](7) [/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4]The responsibility for overall management of a company belongs to:
[/SIZE][SIZE=4][B](c)the board of directors
[/B]

[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](8) [/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4]The best definition of a quorum is which of the following?
[/SIZE][SIZE=4][B](b) It is the number of members of a company that must be present before business may be transacted.
[/B]

[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](9) [/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4]When a partnership is found liable for a debt, which assets are first used to pay the debt?
[/SIZE][SIZE=4][B](c)Partnership assets
[/B]

[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](10)[/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4]The board of directors does not have responsibility over which of the following areas?
[/SIZE][SIZE=4][B](d) None of these
[/B]

[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](11)[/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4]A found a wallet full of money on a roadside and upon finding the address of the owner in the wallet he returned it to its owner. When he came back he read the announcement of a reward for the return of such wallet in the newspaper:
[/SIZE][SIZE=4][B](b) The owner is not liable to pay him the reward
[/B]

[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](12)[/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4] Muhsin is considering forms of business organization for his law firm. One advantage of the limited liability partnership form is that it allows the limited partners to avoid personal liability for:
[/SIZE][SIZE=4][B](c) the obligations of the firm within the limit their contributions to the capital
[/B]

[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](13)[/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4] A’s son has forged B’s name to a pronote. B under threat of prosecuting A’s son demanded that A should sell him his house that is worth Rs. 1000,000/- for 300,000/-. A agrees with the proposal; The contract is:
[/SIZE][SIZE=4][B](b) Voidable
[/B]

[/SIZE][/FONT][/COLOR]
[B][COLOR=black][FONT=Times New Roman][SIZE=4](14)[/SIZE][/FONT][/COLOR][/B][COLOR=black][FONT=Times New Roman][SIZE=4] The best, simple definition of a contract is:
[/SIZE][SIZE=4][B](b) a legally enforceable agreement
[/B]
[/SIZE][/FONT][/COLOR]
[COLOR=black]
[FONT=Times New Roman][SIZE=4][B](15)[/B] Salman signs a written contract with Khalid giving him the right to cast his votes in the election for the directors of Hashiya Limited, whose shares Salman holds. This agreement between Salman and Khalid is known as:
[B](b) a proxy [/B][/SIZE][/FONT][/COLOR]
[COLOR=black]

[FONT=Times New Roman][SIZE=4][B](16)[/B] A sent a proposal to B by post for the sale of his house. B accepted the offer by post. A may revoke his proposal at any time before :
[/SIZE][SIZE=4][B](b) B posts the letter of acceptance
[/B]
[/SIZE][/FONT][/COLOR]
[COLOR=black]
[FONT=Times New Roman][SIZE=4][B](17)[/B] Danish offers to sell to Sadiq a mobile phone for Rs. 550. Sadiq tells Danish that he will take the phone for Rs. 450. Nothing further is said and the next day, Danish demands Rs. 450 from Sadiq in exchange for the phone. Choose the correct statement:
[/SIZE][SIZE=4][B](c) Sadiq is not bound to pay as there is no contract
[/B]
[/SIZE][/FONT][/COLOR]
[COLOR=black]
[FONT=Times New Roman][SIZE=4][B](18)[/B] If you want to start a partnership what formal requirements do you have to meet?
[/SIZE][SIZE=4][B](b) You do not need to satisfy any formal requirements
[/B]
[/SIZE][/FONT][/COLOR]
[COLOR=black]
[FONT=Times New Roman][SIZE=4][B](19)[/B] The relation between the partners of a firm is of:
[B](c) Principal and Agent [/B][/SIZE][/FONT][/COLOR]
[COLOR=black]

[FONT=Times New Roman][SIZE=4][B](20)[/B] A bearer of instrument may be negotiated by:
[B](a) Mere delivery [/B][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=4][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=4][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=4][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=4]Regards[/SIZE][/FONT][/COLOR]

leopard Saturday, September 05, 2009 01:38 PM
Please Verify the Answers!!!
 
Every One is invited to please verify the answers of these MCQs. Since there there were no solved MCQs of Mercantile Law therefore i am trying to facilitate the members of the forum with the team efforts....
but please on cocksure answers or faults must be pointed out with corrections.

@ Raz Sahib
Janab kindly counter verify these MCQs n also write the answers of the missing one

@ Tahir Rauf (red Hawk)
Thank u brother for ur personal efforts.


[B][CENTER]FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN B.P.S. -17, UNDER THE FEDERAL GOVERNMENT, 2005
MERCANTILE LAW
(Compulsory Question)[/CENTER][/B]


8. Write the correct answer in the Answer Book. Do not reproduce the question.
(1) Talal is forming a business which he wants to control completely. He knows nobody else with whom he wishes to work, he values his privacy, and he dislikes formality, paper work, state filing requirements, and lawyers. What type of business organization should he prefer?
(a) general partnership [B](b) Sole Proprietorship[/B]
(c) Single Member Company (d) None of these
(2) The Articles of Association of a company contain:
[B](a) a set of governing rules adopting by the company[/B]
(b) resolutions of the board of directors
(c) information about the corporation, including its organization and functions.
(d) None of these
(3) A partnership involves three essential elements. Which of the following is not one of those elements?
(a) An equal right in the management of the business
[B](b) Limited liability for the liabilities of the firm[/B]
(c) A joint ownership of the business
(d) None of these
(4) Rashid, Shahid and Talal agree to form a computer business. Rashid agrees to manage the business and to assume full personal liability. Shahid and Talal agree to invest in the firm but to be liable only to that extent. These three have formed
(a) a limited liability company (b) a limited liability partnership
(c) an unlimited partnership ([B]d) None of these[/B]
(5) The members of a limited partnership include:
(a) general and limited partners (b) general partners only
(c) creditors [B](d) None of these[/B]
(6) A bearer cheque may be negotiated by:
[B](a) Mere delivery[/B] (b) Endorsement and delivery
(c) Delivery with a separate written contract
(d) None of these
(7) The responsibility of overall management of a company belongs to:
(a) the chief financial officer (b) the employees
(c) the board of directors [B](d) None of these[/B]
(8) The best definition of a quorum is which of the following?
(a) It is 51% of all shareholders
[B](b) It is the number of members of a company that must be present before business may be transacted.[/B]
(c) It is the number of voters who must agree to alter the company’s articles.
(d) None of these
(9) When a partnership is found liable for a debt, which assets are first used to pay the debt?
(a) Individual assets of the partners
(b) Personal property of the limited partners
[B](c) Partnership assets[/B] (d) None of these
(10) The board of directors does not have responsibility over which of the following areas?
(a) The appointment, supervision, and removal of corporate officers
[B](b) The appointment, supervision, and removal of employees generally[/B]
(c) The declaration and payment of corporate dividends
(d) None of these
(11) A found a wallet full of money on a roadside and upon finding the address of the owner in the wallet he returned it to its owner. When he came back he read the announcement of a reward for the return of such wallet in the newspaper:
(a) The owner is liable to pay him the reward
[B](b) The owner is not liable to pay him the reward[/B]
(c) The owner is liable to pay him half of the reward
(d) None of these
(12) Muhsin in considering forms of business organisation for his law firm. One advantage of the limited liability partnership form is that it allow the limited partners to avoid personal liability for:
(a) the malpractice of other limited partners regarding the conduct of the firm’s business
(b) the obligation of the firm beyond their contributions to the capital
(c) the obligations of the firm within the limit their contributions to be capital
[B](d) None of these[/B]
(13) A’s son has forged B’s name to a pronote. B under threat of prosecuting A’s son demanded that A should sell him his house that is worth Rs. 1000,000/- for Rs. 300,000/- A agrees with the proposal. The contract is
(a) Valid (b) Voidable
([B]c) Void[/B] (d) None of these
(14) The best, simple definition of a contract is:
(a) an objective “meeting of the minds”
[B](b) a legally enforceable agreement[/B]
(c) a document reflecting a “meeting of the mind” between two or more competent parties
(d) None of these
(15) Salman signs a written contract with Khalid giving him the right to cast his votes in the election for the directors of Hashiya Limited, whose
shares Salman holds. This agreement between Slaman and Khalid is known as:
(a) a derivative [B](b) a proxy[/B]
(c) a Memorandum of Understanding
(d) None of these
(16) A sent a proposal to B by post for the sale of his house. B accepted the offer by post. A may revoke his proposal at any time before
[B](a) B receives the letter of proposal[/B]
(b) B posts the letter of acceptance
(c) A receives the letter of acceptance
(d) None of these
(17) Danish offers to sell to Sadiq a mobile phone for Rs. 550. Sadiq tells Danish that he will take the phone for Rs. 540. Nothing further is said and the next day, Danish demands Rs. 450 from Sadiq in exchange for the phone. Choose the correct statement
(a) Sadiq is bound to pay as his offer has been accepted by Danish;
(b) Although there is no contract Sadiq;
[B](c) Sadiq is not bound to pay as there is no contract;[/B]
(d) None of these
(18) If you want to start a partnership what formal requirements do you have to meet?
(a) You must register the firm with the Registrar of Firms;
[B](b) You do not need to satisfy any formal requirements;[/B]
(c) Your firm cannot operate until you draft and get registered the Article of Partnership;
(d) None of these
(19) The relation between the partners of a firm is of:
(a) Employer and Employee (b) Trustee and Beneficiary
[B](c) Principal and Agent[/B] (d) None of these
(20) A bearer instrument may be negotiated by:
[B](a) Mere delivery[/B]
(b) Endorsement and delivery
(c) Delivery with a separate written contract
(d) None of these


[B][CENTER]
FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN B.P.S. -17, UNDER THE FEDERAL GOVERNMENT, 2006
MERCANTILE LAW
(Compulsory Question)[/CENTER][/B]


8. In each of the following clauses of this question only one statement is correct. Write down in your answer book only the correct statement of the following clauses. DO NOT WRITE THE WHOLE CLAUSE:
(1) When an offer can only be accepted by the performance of the person to whom the offer is made, is characteristic of:
(a) bilateral contracts; (b) unilateral contracts;
[B](c) implied contracts;[/B] (d) None of these
(2) A tells B, “If you stood first in the class, I’ll pay you Rs.5000.00. B stood first in class and A paid him Rs.5000.00. Which of the following is correct?
(a) A and B had a unilateral contract;
(b) A and B had an executory contract;
[B](c) A and B had an executed contract;[/B]
(d) None of these
(3) A offers to sell B his motorcycle at some time in the future. B accepts. Is there a valid contract?
(a) Probably not, the terms are not definite;
(b) Probably yes;
[B](c) Definitely not because A failed to communicate the offer;[/B]
(d) None of these
(4) Which of the following is not an effective way to terminatean offer?
(a) By rejection; (b) By acceptance;
[B](c) By counter offer;[/B] (d) None of these
(5) A offers to sell B his collection of rare books for Rs.5000.00. Before B even has a chance to accept, A says, “Sorry, I changed my mind, no deal.” This is an example of:
[B](a) Revocation; [/B](b) Rejection;
(c) Counter Offer; (d) None of these
(6) A and B enter into a contract in which A agrees to deliver milk to a restaurant. They forget to include a price in the agreement. A court will:
(a) refuse to enforce the agreement;
(b) select the lowest quoted price for milk and insert it into the contract;
([B]c) determine a reasonable price and insert it into the contract;[/B]
(d) None of these.
(7) A agreed to supply food for Walima to B at 1: 00 pm. However, he could hardly supply the food at 5: 00 pm.
[B](a) B can reject the delivery;[/B]
(b) He can not reject the delivery;
(c) B must accept the delivery;
(d) None of these
(8) Which of the following actions an unpaid seller can not take against a buyer:
(a) Lien; (b) Stoppage in transit;
(c) Sale; [B](d) None of these[/B]
(9) When a partnership is found liable for a debt, which assets are first used to pay the debt?
(a) Individual assets of the partners;
(b) Personal property of the limited partners;
[B](c) Partnership assets.[/B] (d) None of these
(10) A partnership involves three essential elements. Which of the following is not one of those elements?
(a) An equal right in the management of the business;
[B](b) Limited liability for breach of contract;[/B]
(c) A joint ownership of the business
(d) None of these
(11) Which of the following actions requires the unanimous consent of all partners before it may be undertaken?
(a) Hiring a new employee
(b) Purchasing new office equipment;
[B](c) Admitting new partners;[/B]
(d) None of these
(12) An Order Instrument is the one which is payable to:
[B](a) A named person;[/B] (b) To a bearer;
(c) To both (d) None of these
(13) A bearer Instrument is the one which is payable to:
(a) A named person; [B](b) To a bearer;[/B]
(c) To both; (d) None of these
(14) A holder in due course is the one:
(a) Who finds an instrument;
(b) Who steals an instrument;
(c) Who gets an instrument as a gift;
[B](d) None of these[/B]
(15) For the incorporation of a limited liability company filing of Memorandum of Association is essential:
(a) for a public limited company only;
(b) for a private limited company, a public limited company and an unlimited company;
(c) for a Public Limited company only;
(d) None of these
(16) A subsidiary company is the one:
(a) which holds the majority shares of another company;
(b) which deals in the trading of shares of other companies;
[B](c) in which the majority shares are held by another company;[/B]
(d) None of these
(17) A is considering different forms of business organization for his business. For the purposes of owning property and being a party to litigation, forms which are legal entities separate from their owners include:
(a) Limited Partnership only;
(b) Private Limited Companies only;
[B](c) Both Private and Public Limited Companies[/B]
(d) None of these
(18) A decision made by arbitrators is called:
(a) Sentence; [B](b) Award;[/B]
(c) Judgment (d) None of these
(19) An empire in an arbitration reference is appointed when the number of arbitrators is:
(a) Odd; (b) Even;
(c) More than 10. (d) None of these
(20) The appointment of a person of the minor age as an agent is:
(a) Void; [B](b) Valid;[/B]
(c) Voidable (d) None of these


[B][CENTER]FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS - 17, UNDER THE FEDERAL GOVERNMENT, 2007
MERCANTILE LAW
(Compulsory Question)[/CENTER][/B]


Q.8. Write only the correct answer in the Answer Book. Do not reproduce the question.
(1) Which of the following is a bilateral contract?
[B](a) A tells B that he will pay him Rs. 200 if B will wash his car which B does.[/B]
(b) A writes B a letter in which he promises that if B will wash his car, he will pay him Rs. 200 which B does.
(c) A and B both sign a piece of paper which says, “A agrees to pay B Rs. 200 if B agrees to wash A’s car in exchange for Rs. 200.”
(d) None of these
(2) A called his friend B and offered to give him two tickets of a cricket match taking place next month. B said “okay! I love to watch cricket matches.” A few days later A called B and told him that he couldn’t give B the tickets. Assuming B sued A:
(a) He would probably win as a contract was formed.
(b) He would probably lose because the contract was not in writing.
[B](c) He would probably lose as the court would hold no contract was formed.[/B]
(d) None of these
(3) Under the doctrine of quasi contract, a plaintiff may recover in “quantum merit”, a Latin phrase that means:
(a) “as much as he deserves” (b) “treble damages”
(c) “only a token sum” (d) None of these
(4) Which of the following writings are negotiable instrument?
(a) A promise to pay Rs. 2000 for the services rendered if the services are renders as soon as possible.
(b) An unconditional promise to pay a reasonable sum for the services rendered.
(c) An unconditional promise to pay Rs. 3000 some time next month.
[B](d) None of these[/B]
(5) A has a bill of exchange that does not indicate when it is to be paid as the language of the bill only says “Pay”. When is it payable to A?
(a) In 30 days.
(b) Never as the instrument is void if it does not have a payment date.
[B](c) In a reasonable time.[/B]
(d) None of these
(6) A writes a cheque on his Habib Bank account to pay for groceries at Utility Stores. Who is the drawee?
(a) Utility Stores
(b) Both Habib Bank and Utility Stores
[B](c) Habib Bank[/B]
(d) None of these
(7) Which of the following may count as the signature of a drawer?
(a) An “X” made by the drawer
(b) The signature of the drawer’s agent
[B](c) Both of the above[/B]
(d) None of these
(8) Which of the following language on an order will create a bill of exchange?
(a) “Pay X if you can” (b) “I wish you pay X”
(c) “Please pay X” [B](d) None of these[/B]
(9) Which of the following is payable at a definite time?
(a) “Payable when “Z” wins the presidential election.”
[B](b) “Payable on or before May 30.”[/B]
(c) Both (a) and (b)
(d) None of these
(10) Which of the following phrases makes an order bill of exchange?
(a) “Pay to the order of A.”
(b) “Pay to the order of my brother.”
[B](c) Both (a) and (b)[/B]
(d) None of these
(11) A writes a postdated cheque. Is it negotiable?
[B](a) Yes[/B]
(b) No, because it does not specify a definite date of payment
(c) No, because postdated cheques are void
(d) None of these
(12) You write a cheque to pay for your haircut. In this transaction, who is the drawee?
(a) You because you drew up the cheque
[B](b) Your bank because it must pay the cheque[/B]
(c) The person who cuts your hair because the cheque is payable to him
(d) None of these
(13) The best, simple definition of a contract is:
(a) An objective “meeting of minds.”
(b) A negotiated two-party agreement upon which each party will act or refrain from acting.
(c) A document reflecting a “meeting of the minds” between two or more competent parties.
[B](d) None of these[/B]
(14) If A is hit by a car, and B, a doctor, sees the incident and performs emergency first aid upon A which results in A recovery:
(a) A unilateral contract is created whereby A is obligated to pay Dr. B for services rendered.
(b) A bilateral contract is created and both parties must perform their duties.
[B](c) A quasi contract is created between the parties.[/B]
(d) None of these
(15) A offers to sell to B a mobile phone for Rs. 5500. B tells A that he will take the phone for Rs. 4500. Nothing further is said and the next day, A demands Rs. 4500 from B in exchange for the phone. Choose the true statement:
[B](a) B is not obligated to pay Rs. 4500 to A[/B]
(b) B is obligated to pay Rs. 4500 to A
(c) B is obligated to pay Rs. 5500 to A
(d) None of these
(16) The most common form of agency is:
(a) Implied [B](b) Express[/B]
(c) Injunctive (d) None of these
(17) Assume that a new partner enters an ongoing partnership. The new partner’s liability to preexisting creditors is best described by which of the following?
[B](a) The new partner is not liable to preexisting creditors of the firm.[/B]
(b) The new partner must negotiate his or her liability with the preexisting creditors.
(c) The new partner is only liable to the preexisting creditors to the extent of his capital contribution.
(d) None of these
(18) What is not a correct statement concerning promoters?
[B](a) They are agents of the company[/B]
(b) They generally are active before the company is formed
(c) They owe fiduciary duties to the company
(d) None of these
(19) The phrase “piercing the corporate veil” refers to:
(a) Inspecting the books of the company
(b) The ignoring by courts of the corporate entity in order to do justice
(c) Learning the identity of the shareholders of the company
[B](d) None of these[/B]
(20) When someone gives to another person a power of attorney, this means that:
(a) Such person is an undisclosed principal
(b) Such person is a disclosed principal
[B](c) Such person given the power has authority to act as an agent[/B]
(d) None of these

[CENTER][B]FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR
RECRUITMENT TO POSTS IN BPS-17 UNDER
THE FEDERAL GOVERNMENT, 2008

MERCANTILE LAW
(Compulsory Question)[/B][/CENTER]

Q. 1 Select the best option/answer and fill in the appropriate box on the Answer Sheet.
(i) If the consideration for an agreement is inadequate, the agreement is:
[B](a) Valid[/B] (b) Void
(c) Voidable (d) None of these
(ii) On a contract by an Agent on behalf of an undisclosed Principal, the Principal:
(a) May sue on contract (b) Cannot sue
[B](c) Is hit by privity of contract[/B] (d) None of these
(iii) Carlill v Carbolic Smoke Ball Co. Ltd. deals with:
(a) Counter proposal (b) Implied acceptance
(c) Implied revocation (d) None of these
(iv) What is the amount of care a bailee is required to take in respect of goods bailed to him:
(a) Extraordinary (b) Ordinary
[B](c) Reasonable[/B] (d) None of these
(v) A Void Contract is:
(a) An illegal agreement
(b) Parlty valid agreement
[B](c) Ceased to be a valid agreement[/B]
(d) None of these
(vi) X agrees not to carry on a similar business with Y for two years in consideration of Rs. 50,000/- as goodwill. The agreement is:
(a) Void due to restraint of trade [B](b) Valid[/B]
(c) Against X’s fundamental rights (d) None of these
(vii) Which one of the following cannot be called an Act of God:
(a) An unprecedented rainfall (b) An earthquake
[B](c) Fire not caused by lightening[/B] (d) None of these
(viii) An obligation arises from:
[B](a) A contract[/B] (b) From a wrongful act
(c) Both (a) & (b) (d) None of these
(ix) The rule nemo dat quod non habet means:
(a) No-one should interfere in another’s business

(b) No-one should be retained in a partnership against his will
(c) No-one can give what he has not got
(d) None of these
(x) In a public company the shares are subscribed by:
(a) Government (b) Management
(c) Creditors (d) None of these
(xi) Can a minor be:
(a) Admitted as partner in a firm
(b) Admitted to the benefits of partnerships
(c) Admitted as a sleeping partner
(d) None of these
(xii) Transfer of property means:
(a) Delivery of goods (b) Transfer of possession
(c) Transfer of ownership (d) None of these
(xiii) Caveat Emptor rule means:
(a) Employer beware (b) Seller beware
(c) Creditor beware (d) None of these
(xiv) A liquidator is a person:
(a) Who is chairman of Board of Directors
(b) Promoter of a company
(c) Who winds-up a company
(d) None of these
(xv) Which one of the following clauses is considered vital in a memorandum of association of a public company:
(a) Name clause (b) Object clause
(c) Capital clause (d) None of these
(xvi) A subsidiary company means
(a) A supporting company (b) A non-entity
(c) An unregistered company (d) None of these
(xvii) Which of the following actions an unpaid seller cannot take against a buyer:
(a) Exercise the right of lien
(b) Stoppage of goods in transit
(c) Sale
(d) None of these
(xviii)X draws a gun and asks Y to sign an agreement. This is:
(a) Persuasion (b) Coercion
(c) Undue influence (d) None of these
(xix) X is involved in some business; he transfers his share without the consent of all its members. He is working in:
(a) A company
(b) A firm

marwatone Saturday, September 05, 2009 06:38 PM
Here are some questions that I tried to solve to the best of my knowledge.



[COLOR="DarkRed"][B](1) The rule nemo dat quod non habet means:[/B][/COLOR]

(a) No-one should interfere in another’s business
(b) No-one should be retained in a partnership against his will
[B](c) No-one can give what he has not got[/B]
(d) None of these

[COLOR="DarkRed"][B](2) In a public company the shares are subscribed by:[/B][/COLOR]

(a) Government
(b) Management
[B](c) Creditors [/B]
(d) None of these
[COLOR="DarkRed"]
[B](3) Transfer of property means:[/B][/COLOR]

(a) Delivery of goods
(b) Transfer of possession
[B](c) Transfer of ownership [/B]
(d) None of these

[COLOR="DarkRed"][B](4) Caveat Emptor rule means:[/B][/COLOR]

(a) Employer beware
(b) Seller beware
(c) Creditor beware [B]
(d) None of these[/B]

[COLOR="DarkRed"][B](5) A liquidator is a person:[/B][/COLOR]

(a) Who is chairman of Board of Directors
(b) Promoter of a company
[B](c) Who winds-up a company[/B]
(d) None of these

[COLOR="DarkRed"][B]
6) Under the doctrine of quasi contract, a plaintiff may recover in “quantum merit”, a Latin phrase that means:[/B][/COLOR]
[B]
(a) “as much as he deserves” [/B]
(b) “treble damages”
(c) “only a token sum”
(d) None of these
[COLOR="DarkRed"]
[B](7) An empire in an arbitration reference is appointed when the number of arbitrators is:[/B][/COLOR]

(a) Odd;
[B](b) Even;[/B]
(c) More than 10.
(d) None of these

Agha Zuhaib Wednesday, February 22, 2012 05:12 AM
[CENTER][CENTER][SIZE=3][B][U][COLOR=blue][FONT=&quot]Mercantile Law CE-2009[/FONT][/COLOR][/U][/B][/SIZE][/CENTER]
[/CENTER]
[SIZE=3]
[B][FONT=&quot](i)[/FONT][/B][/SIZE] [FONT=&quot][SIZE=3] Select the correct answer:
[B](a) Promisee and Offeree are one and same party[/B]
(b) Offeree is a party who propose an agreement while promisee accepts it
(c) None of these

[B](ii)[/B] Every agreement forbidding marriage of any adult person is void except of a minor:
[B](a) Yes[/B] (b) No (c) Partly correct (d) None of these

[B](iii)[/B] Can a contract executed in Saudi Arabia be enforced in courts in Pakistan?
(a) Yes [B](b) No[/B] (c) None of these

[B](iv)[/B] The effect of coercion on a contract is that the contract becomes:
(a) void [B](b) voidable[/B] (c) valid (d) None of these

[B](v)[/B] The members of partnership carrying out business of banking must not exceed:
(a) 10 [B](b) 20 [/B](c) 50 (d) None of these

[B](vi)[/B] The minimum number of members required for forming private company is:
(a) 1 (b) 3 (c) 5 [B](d) None of these[/B]

[B](vii)[/B] The minimum number of members required for forming public company is:
[B](a) 7[/B] (b) 50 (c) 5 (d) None of these

[B](viii)[/B] After its incorporation, the ordinary General Meeting of a company must be held within:
(a) One year [B](b) the year of incorporation[/B]
(c) Eighteen months from the date of incorporation (d) None of these

[B](ix)[/B] What type of tax is referred to in the sale of Goods Act, 1930?
(a) Income tax (b) Wealth tax (c) Customs duty
[B](d) Sales tax[/B] (e) None of these

[B](x) [/B]The carrier holds the goods in transit as:
(a) Trustee (b) Agent (c) Bailee [B](d) None of these[/B]

[/SIZE][/FONT][SIZE=3][B][FONT=&quot](xi)[/FONT][/B][/SIZE][FONT=&quot][SIZE=3] For how much days, a promissory note is entitled to days of grace to be at maturity when it is not
expressed to be either payable on demand or otherwise?
(a) 30 days [B](b) 15 days[/B] (c) 3 days (d) None of these

[B](xii)[/B] A promissory note is at maturity on Sunday, being public holiday. Whether such promissory note will be deemed to be due on: [/SIZE][/FONT][SIZE=3]
[B][FONT=&quot](a) the next preceding business day[/FONT][/B][/SIZE] [FONT=&quot][SIZE=3] (b) The next succeeding business day (c) None of these

[B](xiii)[/B] Can a minor become a payee of a negotiable instrument?
(a) Yes [B](b) No[/B] (c) Not himself but his guardian [B](B)[/B]

[B](xiv)[/B] Life Insurance Policy cannot be called in question by an insurer on the ground of inaccurate or false immaterial statement made in the proposal for insurance after:
[B](a) one year[/B] (b) two years (c) three years (d) None of these

[B](xv)[/B] Willfully making statement false in any document required under Insurance Act. 1938, shall be punishable with imprisonment upto:
(a) five years (b) four years (c) three years
[B](d) fine only[/B] (e) None of these

[B](xvi)[/B] Whether a minor can be appointed as nominee to Life Insurance Policy?
[B](a) Yes[/B] (b) No (c) His guardian only (d) None of these

[B](xvii)[/B] Caveat emptor:
(a) is a person who institutes pre-emption suit
[B](b) is seller who discloses defects in the goods being sold[/B]
(c) is the buyer who is supposed to be aware of the suitability of the goods (d) is owner of an empty cave (e) None of these

[B](xviii)[/B] Penalty provided for driving uninsured vehicle is:
(a) imprisonment upto 5 years and fine upto Rs. 1000/- or both
(b) imprisonment upto 1 year and fine upto Rs. 100/- or both
(c) Imprisonment upto 3 months or fine upto Rs. 500/- or with both
(d) fine upto Rs. 10000/- only
[B](e) none of these [/B]

[B](xix)[/B] Can a compoundable criminal case be referred to arbitration?
(a) Yes (b) No [B](c) None of these as only civil matters can be referred to[/B]

[B](xx)[/B] Within how much period, the arbitrators are legally required to make their award after entering on the reference?
(a) one month (b) two months (c) three months
[B](d) four months[/B] (e) None of these[/SIZE][/FONT]


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